Fed Rate Hike Odds Soar to 69.7% Ahead of October Meeting

The odds of a Federal Reserve rate hike in October have surged to 69.7%, according to market pricing.

This represents a significant shift in expectations for U.S. interest rates and financial markets, as the probability of keeping the federal funds rate at 3.75%-4% during the October meeting has fallen to 30.3%

By December, the chances of maintaining this range drop even further, to 6.5%, while expectations for one or two cumulative 25-basis-point hikes by year-end have increased.